Prevent land auctions from disrupting the market

Since the beginning of August, land auctions in Thanh Oai and Hoai Duc districts have attracted a large number of participants, with thousands of registrations, causing a stir in the market.

People stay up all night to research information, waiting for land auction in Hoai Duc district, Hanoi . Photo: Contributor.

At the most recent session in Hoai Duc on September 19, more than a dozen plots of land were won at prices over 100 million VND/m2, of which the highest plot was over 133 million VND/m2.

This level is 18 times higher than the starting price, exceeding the actual value compared to other plots of land in the same area.

With the naked eye, it can be seen that these lands are located far from the center of the capital, at least 20km away, and there is no synchronous infrastructure around, but the price is much higher than large-scale investment projects.

Abnormally high land prices cause significant consequences for socio -economic development, land acquisition for project implementation, especially traffic and urban projects, and market fluctuations.

But it must also be admitted that there are loopholes in the mechanism.

Localities apply Decree 71 to determine the starting price by multiplying the adjustment coefficient with the land price table according to the old land price framework, but have not yet re-determined it according to market principles.

At the same time, the regulation of depositing a maximum of 20% of the starting price also makes the deposit price low and outdated.

In addition, the Law on Property Auction 2024 has stipulated a ban on participating in auctions for that type of property from 6 months to 5 years, if the winner of the land use rights auction violates the obligation to pay the winning price until the decision to recognize the auction results is canceled.

However, this regulation has not been applied.

There is no other way, that loophole must be closed. The starting price must be increased to increase the deposit for land auction.

If the new land price list according to market principles cannot be issued in time, it is necessary to increase the deposit value to 50% of the starting price, or even higher.

Or vice versa, it is necessary to follow the old regulations until there is a new land price list from January 1, 2026.

In addition, the time for paying land use fees after winning the auction can be shortened. If currently, the time limit is up to 90 days to complete financial obligations on land, it can be shortened to about 10 days, so that auction participants are more responsible.

At the same time, early apply the provisions of the Law on Property Auction 2024, prohibiting participation in auctions for that type of property from 6 months to 5 years if the auction winner violates the obligation to pay the auction winning price, leading to the auction result being canceled.

This regulation will purge those who monopolize the market.

There is a regulation that can be applied immediately to investigate tax evasion cases from the difference in money after auction.

After each land auction, a series of real estate sales points appear on that land.

The newly auctioned plots of land were sold at a difference of several tens to several hundreds, even billions of dong compared to the amount stated in the auction certificate.

To legalize this transaction, the winning bidder, after negotiating and receiving the full difference, will write a power of attorney to the buyer.

The buyer brings that power of attorney to fulfill financial obligations and has his name on the land use rights certificate.

The law does not stipulate any difference in the amount of profit. All real estate transactions must be through a notarized contract. This is also an important basis for determining financial obligations.

In fact, there are many paperless transactions, profiteering, and profiteering from skimming deposits after each auction is a typical example.

We can easily detect deposit skimming and tax evasion transactions through power of attorney, comparing information of auction winners and those who perform financial obligations.

When this behavior is controlled, the recent land price "inflation" will be reduced.

Source: https://www.baogiaothong.vn/ngan-dau-gia-dat-gay-nhieu-loan-thi-truong-19224082301211908.htm